Romanian Govt Considers Paying Court-Won Wage Rights In Smaller Tranches

The Romanian Government considers reducing the tranche to be paid next year to public sector employees who won salary rights in court to 5% from 34%, according to a draft fiscal strategy for 2012-2014 obtained by MEDIAFAX.

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According to the document, the measure will help the Government meet its obligations and increase salaries of public sector employees so the latter will recover the money lost following wage-cut measures implemented in 2010.

Government emergency ordinance 71/2009 states that wage rights won by public sector employees in court will be paid in tranches: 34% in 2012, 33% in 2013 and 33% in 2014. The decree also applies to teachers who have recently won salary increases in court.

Prime Minister Emil Boc said recently the salary rights won by teachers in court will be paid in installments starting 2012. The value and payment schedule will be determined once all court rulings are tallied.

Salary rights won in court by public sector employees amount to about 7.5 billion lei (EUR1=RON4.1021). The Government should pay about RON3 billion in 2012 (0.5% of the gross domestic product).

According to the document, the amount of money to be paid next year will be reduced to RON0.5 billion, to allow for salary increases to make up for wage cuts in 2010.

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